Items Tagged with 'Misrepresentation'


  • First American: Fraud and misrepresentation grew in February

    Rising rates bring increase in adjustable rate mortgages
    First American released its monthly Loan Application Defect Index, which showed loans became more risky in February due to increasing interest rates and a move toward adjustable rate mortgages. What else is behind the rise in these riskier loans? Click the headline to read more.
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  • FTC Targets Deceptive Mortgage Advertising

    A new Final Rule issued by the Federal Trade Commission seeks to establish clearer rules on the advertisement of mortgage products as it relates to unfair or deceptive practices that may occur in commercial communications. The intent of the rule is to establish civil penalties to enhance the deterrent of law enforcement actions against deceptive practices, especially in cases where "consumer redress or disgorgement is not available or feasible." The rule establishes three definitions in determining the type of products that fall under this rule. First the product must be considered a form of credit, or "“the right to
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  • Report Finds Misrepresentation Behind Mortgage Fraud

    Mortgages originated in the second quarter of 2008 reflected the trend that mortgage fraud most often occurs at the beginning of the loan process -- the application -- and an increasing amount of application misrepresentations, according to a quarterly fraud report released Tuesday by the Mortgage Asset Research Institute (MARI). "Successful fraud schemes often rely upon the singular nature of the lender’s origination processes," wrote the author of the MARI report. Reported incidents of mortgage fraud in the U.S.
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